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What amount should MaBelle record as research & development
expense in 2015?
19) Jenks Corporation acquired Linebrink Products on January 1,
2015 for $8,000,000, and recorded goodwill of $1,500,000 as a result
of that purchase. At December 31, 2015, Linebrink Products had a
fair value of $6,800,000. The net identifiable assets of the Linebrink
(excluding goodwill) had a fair value of $5,800,000 at that time. What
amount of loss on impairment of goodwill should Jenks record in
2015?
20) The general ledger of Vance Corporation as of December 31,
2015, includes the following accounts:
Copyrights $30,000
Deposits with advertising agency (will be used to promote goodwill)
27,000
Discount on bonds payable 70,000
Excess of cost over fair value of identifiable net assets of Acquired
subsidiary
480,000
Trademarks 90,000
In the preparation of Vance's balance sheet as of December 31, 2015,
what should be reported as total intangible assets?
21) Sealy Corporation had the following information in its financial
statements for the years ended 2014 and 2015:
Cash dividends for the year 2015
$5,000
Net income for the year ended 2015 87,000
Market price of stock, 12/31/14
10
Market price of stock, 12/31/15
12
Common stockholders' equity, 12/31/14
1,000,000
Common stockholders' equity, 12/31/15
1,200,000
Outstanding shares, 12/31/15 100,000
Preferred dividends for the year ended 2015 10,000
What is the rate of return on common stock equity for Sealy
Corporation for the year ended 2015?